This paper questions the widely accepted role of political stability in promoting the growth of the economy. Political stability in any country may offer a peaceful environment for investment to take place. In addition to this, the stability may also provide a good ground where impunity is tolerated.
Stable governance and politics are by no doubt a means through which economic growth takes place. With a peaceful political environment, the government can formulate its agendas. Good investing policies attract investors in the country and makes citizens willing to work hard and improve the country’s economic growth. It is seen that democracy in developed and developing countries foster the growth in the economy compared to the countries that are non-democratic.
It can be argued that stability in politics of any nation can affect the rate at which the country’s economic growth takes place. In addition to this, the level of investment can be altered through increasing the confidence level of investors in that country. The democratic effect on investment is only tentative.
In countries where political stability is practiced, a direct economic growth is realized through positive effect on the rates of investments. Investors will only invest their resources in a country where peace exists, and they are assured of their properties. In contrast to this, economists and investors refer to political instability as a malaise that has a serious harm to the economic growth of the nation.
Irrespective of the political regimes, if a country is stable and does not worry about the radical changes of regimes and conflicts, the citizens do concentrate on working hard in running their businesses, saving and investing in other economic activities.
Cite this document
(“The Relationship Between Political Stability and Economic Growth Essay”, n.d.)
Retrieved from https://studentshare.net/social-science/716903-the-relationship-between-political-stability-and-economic-growth
(The Relationship Between Political Stability and Economic Growth Essay)
“The Relationship Between Political Stability and Economic Growth Essay”, n.d. https://studentshare.net/social-science/716903-the-relationship-between-political-stability-and-economic-growth.
Cited: 0 times
This paper talk about the relationship between political stability of the country and its economic growth. It is argued, that the political stability can not be considered the norm in the humans history, as it often achieved through the oppression by government and can preclude any form of change…
Even as the United States has managed to find a modicum of stability, Europe is experiencing a sovereign debt crisis, with countries such as Greece and Italy falling into severe economic hardship. Within these contexts of understanding, the nature of economic development has come to the forefront of social and political concerns.
For China, the most challenging issue is the continuing incoherent ideology range emerging from the basic contradictions between the identity of the party state, and globalization, and the chase for developing economic liberalization. However, strong elite commitment permits the regime to put an effort to strengthen its legitimacy through building formal institutions.
There has been a heated debate in the economic circles, with some people arguing that democracy is a prerequisite for economic development and others thinking that democracy lead to economic slowdown. In a democratic government system, the entire population or the chosen member of a nation have a voice in governance through the chosen representatives.
Alienated to the Far East, there was always the possibility that the sleeping giant would awake and explode upon the world. However, the awakening was slow, but powerful all the same. Secondly, the fact that China would emerge as a strategic partner with the EU is all the more interesting given their roles in the Cold War Era.
In the modern business world, an entrepreneur can be defined by a number of definitions based on past empirical analytics – an innovator, a leader, a manager, owner of an enterprise, coordinator of economic resources, resource manager, provider of capital, improvement of service levels, enhanced image of the economy on a global platter, and so on.
olitical and economic situations of four countries, Canada, Iraq, the United Kingdom and Somalia, will demonstrate a direct relationship between political stability (or lack thereof) and economic growth. A theoretical analysis of the two key concepts in this essay, political
This means that democracy is not necessary for a country to be economically developed. But these studies have also found evidence of democracy having significant indirect effects on economic growth. Doucouliagos & Ulubasoglu
The report also highlights the economic outlook and forecasts of Israel through the analysis of relevant economic parameters provided by OECD. It was found that though Israel’s economic growth slowed down in 2014, but it again picked up at the end of the year and has been experiencing positive growth since then due to substantial investments.
7 pages (1750 words)Essay
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Essay on topic The Relationship Between Political Stability and Economic Growth for FREE!